Joe Lewis drops bid for Mitchells & Butlers

Joe Lewis, the billionaire currency trader, has dropped plans to take over
Mitchells & Butlers, sending shares in the British pubs and restaurant
group tumbling.

12:27PM BST 13 Oct 2011

He said in statement via his Piedment investment vehicle: "After careful consideration, Piedmont has decided not to proceed with an offer for M&B."

Mitchells & Butlers

M&B shares dropped 12pc to 220p after the announcement.

Last month Mr Lewis, the biggest shareholder in M&B, warned he could walk away after the pub company unveiled a sharp slowdown in growth.

M&B, which had rejected a 230p-a-share takeover proposal from Mr Lewis in early September, reported a like-for-like sales rise of just 0.5pc in the nine weeks to September 17, against a 3.1pc increase in the 42 weeks to July 16.

A spokesman for Piedmont said at the time that the sales growth was "very disappointing", adding: "We are seriously considering our options."

M&B and its instititional shareholders had branded the 230p proposal as significantly undervaluing the pub company.

Piedmont had until October 17 to table a bid.

It was reported that his decision was likely to be driven in the most part by the perceived support of other shareholders, including Irish horseracing tycoons John Magnier and JP McManus, who hold 20.8pc of M&B via their Elpida investment vehicle